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about_us 2018/05/27 07:48 about_us 2018/07/26 09:20 current
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The Connolly Report** (about dividend growth common stocks) has been published since 1981 by Thomas. P. Connolly, B.Com. ('64) toward the end of March, June, September and December. It's mostly on-line now inside this site...a blog some five pages a month plus data. The Connolly Report** (about dividend growth common stocks) has been published since 1981 by Thomas. P. Connolly, B.Com. ('64) toward the end of March, June, September and December. It's mostly on-line now inside this site...a blog some five pages a month plus data.
-We are open again for a few months for access for the rest of 2018 and well into 2019. Most likely, after 38 years, the blog will end in 2019. To hook you up for access Denise needs: +We are open again for a few months for access for the rest of 2018 and into 2019. Most likely, after 38 years, the blog will end sometime in 2019. 
 + 
 +To hook you up for access Denise needs:
  * 1. A postal code for your initial password (caps and a space) and   * 1. A postal code for your initial password (caps and a space) and
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Any current Connolly Report issue (a summary of blog from the previous two months) is available for a $10 bill (cheques are not legal tender) from our Louise Connolly, 607 - 185 Ontario St., Kingston ON **K7L 2Y7**. Any current Connolly Report issue (a summary of blog from the previous two months) is available for a $10 bill (cheques are not legal tender) from our Louise Connolly, 607 - 185 Ontario St., Kingston ON **K7L 2Y7**.
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 +Here is what you are paying $50 for. This was written just before Denise's 50th birthday in 2018. "Slowly But Surely ⇑ I see the wealth building when I update our decade-long earnings (and dividend) data. The earnings figure of ten years ago is dropped: the most recent year is added. Each average earnings figure changes, positively usually: up a dime or so. I notice, as I do it by hand. Then, one at a time, I change the ten-year earnings figure on our main list spreadsheet (soon to appear just above for subscribers). Up. Up a bit year after year . . . earnings and dividends. Growing capital. We are long term investors, slowly building wealth. Safely. The $13,300 invested for 300 in CNR in 2009 now provides a 7% yield as the dividend more than tripled from 51¢ to $1.65. Capital became 600 shares valued at $62,000. But you have to hand in there. Instead of Bend it like Beckham, it's Hold it like Buffett. I do NOT own bonds. ♣ While the market is still rather high, cull the couple in your portfolio that are not preforming like your best securities (C. Munger's idea). ♦ Which stocks do we select? The companies with at least a decade of steadily growing earnings and dividends. An initial yield of 4% or so, remember, plus dividend growth of 8% or so (the average of our lists) gives us 12% . . . eventually. As best you can, forget about fluctuating prices. Realize your income and capital are growing behind the scene.
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 +DIVIDEND GROWTH INVESTING:
 +  * first you have to know about it
 +  * then understand its ramifications - as dividend grows, so does capital
 +  * you must believe it works - evidence is provided
 +  * temperament to hold as the magic is fulfilled - expect a 12% return: initial yield plus dividend growth
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Here's another example. In 2005, Fortis shares split 4:1. We originally bought our first 500 Fortis shares in March of 1995 at $24.62 a share...some $12,300 in total. In the fall of 2005, ten years later (you have to be patient with this strategy), Fortis mailed us our new 1,500 share certificate (the 4:1 split). In total we now have 2,000 shares of Fortis. As I key this the price of FTS is close to $25...about what we paid for our 500 shares originally. Now our 2,000 shares are worth $25 times 2000 = $50,000. That's not all. In early 1996, I thought Fortis was still a good buy, so we added to our position with another 500 shares. They too are valued at $50,000. So, we have $100,000 in Fortis...just one stock in a portfolio of some 10 stocks. All, but one, have done the much same thing. We're not selling. This investment yields 9.4%. Work it out. Fortis' dividend after the split is 64¢ a share. We have 4000 shares now. Our annual income from the Fortis shares is 4000 times .64 = $ 2,560. That's about what we paid for our original 500 shares. In 2006, if Fortis increases its dividend again, and I expect it will (in 2005 the dividend increase was 12.5%) our income will go up too. Can you think of a better retirement asset? Here's another example. In 2005, Fortis shares split 4:1. We originally bought our first 500 Fortis shares in March of 1995 at $24.62 a share...some $12,300 in total. In the fall of 2005, ten years later (you have to be patient with this strategy), Fortis mailed us our new 1,500 share certificate (the 4:1 split). In total we now have 2,000 shares of Fortis. As I key this the price of FTS is close to $25...about what we paid for our 500 shares originally. Now our 2,000 shares are worth $25 times 2000 = $50,000. That's not all. In early 1996, I thought Fortis was still a good buy, so we added to our position with another 500 shares. They too are valued at $50,000. So, we have $100,000 in Fortis...just one stock in a portfolio of some 10 stocks. All, but one, have done the much same thing. We're not selling. This investment yields 9.4%. Work it out. Fortis' dividend after the split is 64¢ a share. We have 4000 shares now. Our annual income from the Fortis shares is 4000 times .64 = $ 2,560. That's about what we paid for our original 500 shares. In 2006, if Fortis increases its dividend again, and I expect it will (in 2005 the dividend increase was 12.5%) our income will go up too. Can you think of a better retirement asset?
-Financial planners (now calling themselves wealth managers) because they know little about stocks, sell most people mutual funds or ETFs. Then, when retirement comes, they recommend withdraws from the funds of 4% or 5% each year. Mutual funds are not noted for providing growing income, so retirees often begin eating into capital right away. When the market collapses, as it did in 2008, retirees worry they will not have sufficient capital to fund retirement.+Financial planners (now calling themselves wealth managers) because they know little about stocks, sell most people mutual funds or ETFs (high commissions). Then, when retirement comes, they recommend withdraws from the funds of 4% or 5% each year. Mutual funds are not noted for providing growing income, so retirees often begin eating into capital right away. When the market collapses, as it did in 2008, retirees worry they will not have sufficient capital to fund retirement.
I have no such worry. The dividend growth strategy does not depend upon capital appreciation. It counts on dividend growth. The common stocks I own begin with higher yields and, with annual dividend increases, as the examples above illustrate, the yields grow. When it comes to retirement, I live from the income. I don't need to count on the capital gains. Appreciation of the stock price, however, will occur, eventually, as the dividends increase. These gains are my retirement bonus...the extra trip each year or helping the kids with their mortgage payments. I have no such worry. The dividend growth strategy does not depend upon capital appreciation. It counts on dividend growth. The common stocks I own begin with higher yields and, with annual dividend increases, as the examples above illustrate, the yields grow. When it comes to retirement, I live from the income. I don't need to count on the capital gains. Appreciation of the stock price, however, will occur, eventually, as the dividends increase. These gains are my retirement bonus...the extra trip each year or helping the kids with their mortgage payments.
How dependable are the dividends, you ask? Well, I only buy stocks of companies which have solid earnings, electrical utilities, pipelines, banks, and food retailers mostly. And further, I want companies which have paid dividends for a least a decade, preferably more: 20 years is a good standard. Dividends are surer than capital gains. The idea of growing income is so simple. I don't understand why more folks don't do it. Think about these ideas. How dependable are the dividends, you ask? Well, I only buy stocks of companies which have solid earnings, electrical utilities, pipelines, banks, and food retailers mostly. And further, I want companies which have paid dividends for a least a decade, preferably more: 20 years is a good standard. Dividends are surer than capital gains. The idea of growing income is so simple. I don't understand why more folks don't do it. Think about these ideas.
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